The IMF deal with Pakistan
The IMF deal with Pakistan is a recent development that has been in the news. The IMF stands for the International Monetary Fund, which is an organization of 190 countries that works to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and diminish poverty around the world. Pakistan has a history of seeking bailouts from the IMF since 1958. The most recent extended fund facility package of $6 billion was agreed upon in July 2019 for a period of 39 months. However, the program was stalled due to the COVID-19 pandemic and its economic impact2. In April 2020, the IMF approved a rapid financing instrument of $1.386 billion to help Pakistan with its balance of payment needs. In November 2021, Pakistan reached a staff-level agreement with the IMF to restore the stalled program and secure an additional $1.2 billion in loans. The IMF also agreed to extend the program by a year and augmen...